FX.co ★ Dominican Republic Maintains Key Rate at 5.75%

In its May 2025 meeting, the Central Bank of the Dominican Republic opted to maintain its benchmark interest rate at 5.75%, following a total reduction of 125 basis points since late 2024. This decision takes into account both global and domestic considerations, such as ongoing global uncertainty, the high-interest rates in the United States, particularly on long-term financial instruments, and inflation that remains within the target range of 4.0% ± 1.0%. As of April 2025, headline inflation was recorded at 3.71%, while core inflation, which more directly correlates with monetary policy, was at 4.13%, indicating sustained price stability. The Banco Central de la República Dominicana anticipates that both general and core inflation will remain within their target ranges throughout 2025 and 2026. Additionally, it has effectively managed liquidity and upheld financial stability, bolstered by strong exports, remittances, and foreign investments, which have in turn strengthened the peso and increased the reserve levels.